The government will audit Free Primary Education money following an EACC report on misappropriation of the funds.
According to the report, presented on Wednesday to Education CS Fred Matiang'i, some schools use the money for allowances and overseas trips.
The report also revealed that some schools falsify payment documents for items not delivered and that a headteacher loaned himself and failed to repay Sh100,000.
EACC Chairman Halakhe Waqo said the teachers who
misappropriate
the funds
should
be held accountable for the misuse.
Speaking at the Integrity Centre on Wednesday, Matiang'i said the ministry has formed a special team to work with EACC and implement the commission's recommendation to prevent further loss of resources.
"We need to audit the funds given to schools, and we will have capacity-building programs to help with this," he added.
The CS said the programs will be for teachers and other stakeholders in the Education sector.
The Ethics and anti-corruption commission report is for the year 2013, at a time when FPE was 10 years old.
In January, President Uhuru Kenyatta
of how public primary and secondary schools have spent the billions in free learning cash released to them across three years.
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The Education funds were first rolled out in 2003, with each child receiving Sh1,020 per year.
In 2014, the government increased FPE to Sh1,420 to cater for an estimated enrollment of about 10 million children in about 23,000 public primary schools.
Annually this costs Sh14 billion.
The FPE cash is divided for school instructional materials, and the general purpose account that initially got Sh650 and Sh350 respectively, totaling Sh1,020.
With the increase of capitation to Sh1,420, it is unclear which components benefited most, although the general purpose account is said to have got the larger share of the Sh400 increment.
The Secondary fund has been increased to Sh12,870 and currently benefits about 2.3 million students in about 8,000 secondary schools.
Every year Sh30 billion is released to the Secondary School programme.
In 2009, a forensic audit by Treasury discovered that between Sh4.6 billion to Sh8.2 billion, mainly donor cash for FPE for the period between 2005 and 2009, could not be accounted for at Education ministry level.